In the article, Frank summarizes the results of a recent Gallup poll, which found that “increasing taxes on the rich” to be the least important policy change of 12 different choices. Increasing the number of jobs took first place, followed by reducing corruption in the government, and reducing the deficit. Even improving the environment and raising moral standards were ranked higher.
I suppose this is not surprising. Each of the other policy changes has a “result” – like people getting work and wages, clearer environment (and government), and less debt for future generations.
Raising taxes on wealthy merely is a social policy of sort – it doesn’t really “fix” or “improve” a first order quality of life issue for most people. It “MAY” mean they pay less in taxes themselves (or see the debt decrease, or social security solvency improved) – but not necessarily. It “MAY” improve a person outlook on life by knowing that the rich are paying more and more – but that typically “class envy” doesn’t work – or at least not for very long.
I suspect this is one reason why the Occupy Wall Street faded. It was great (for a while) to take about how unfair the 99% feels – but then what exactly do you want from the 1%? More money? What are you going to do with it?
And I often wonder if that was a multi-year, multi-decade, multi-generational transfer?
By the way, as I discussed previously in this blog – we don’t impose taxes richness or wealth (except for the estate tax, which I am pretty sure this survey wasn’t asking about). We tax “taxable income” – which is gross income less some (many, in fact) allowable deductions. There are many increases in wealth a taxpayer can have during any year which are NOT taxable – real estate value increases (not sold), 401(k) contributions, gains from stock (not sold), etc.
The real wise and savvy tax planner can figure out how to make plenty of wealth increases during the year, and plenty of increases in their “wealthy” status – without generating high taxable income.
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